An Externality Is Defined as

question 204

Multiple Choice

An externality is defined as

• A)an opportunity cost that is not considered, which causes inefficiency.
• B)a social cost that affects parties external to a transaction.
• C)a transaction which imposes a loss on one of the parties involved.
• D)a "cost of doing business" that cannot be allocated to any particular good.
• E)the increase in cost associated with increased production.

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Definitions:

Firm's Long-Term Success

The sustained achievement of strategic goals and objectives that enables a business to grow, compete effectively, and maintain financial health over an extended period.

Customer Needs

The desires, requirements, or necessities that customers express, which can influence their purchasing decisions.

Empowerment

The process of increasing the capacity of individuals or groups to make choices and to transform those choices into desired actions and outcomes.

Service Provided

The assistance or work performed by a company for the benefit of its customers, can be tangible or intangible.